TY - JOUR
AU - Gregorio,Jose De
AU - Edwards,Sebastian
AU - Valdes,Rodrigo O.
TI - Controls on Capital Inflows: Do they Work?
JF - National Bureau of Economic Research Working Paper Series
VL - No. 7645
PY - 2000
Y2 - April 2000
DO - 10.3386/w7645
UR - http://www.nber.org/papers/w7645
L1 - http://www.nber.org/papers/w7645.pdf
N1 - Author contact info:
Jose De Gregorio
Professor
Departamento de Economia
Universidad de Chile
Diagonal Paraguay
Santiago
Chile
Tel: 562 9772045
E-Mail: jdegregorio@fen.uchile.cl
Sebastian Edwards
UCLA Anderson Graduate School of Business
110 Westwood Plaza, Suite C508
Box 951481
Los Angeles, CA 90095-1481
Tel: 310/206-6797
Fax: 310/206-5825
E-Mail: sebastian.edwards@anderson.ucla.edu
Rodrigo Valdes
E-Mail: rvaldes.email@gmail.com
M2 - featured in NBER digest on 2000-09-01
AB - This paper analyzes the effectiveness of capital controls, in particular the Chilean experience with the use of the unremunerated reserve requirement. We examine the effects on interest rates, real exchange rate, and the volume and composition of capital inflows. The effects are elusive and it is difficult to pin down long-run effects. Although after the unremunerated reserve requirement was introduced there was an increase in the interest rate differential, the econometric evidence does not show it has a significant long-run effect on interest rate differentials. There are also no effects on the real exchange rate. However, the more persistent and significant effect is on the composition of capital inflows, tilting composition toward longer maturity.
ER -